FCA Requests Information From Firms On Ongoing Advice Services
What has happened?
In February 2024, the FCA wrote to a number of financial adviser firms with a survey requesting information about their delivery of ongoing services for which their clients continue to be charged after advice has been given.
What are the key points of the survey?
In its survey, the FCA asked whether firms have assessed their ongoing services in response to the introduction of the Consumer Duty, and also whether they have made any changes as a result. It asked for data on the number of clients due to receive a review of the ongoing suitability of the advice as part of the service, how many received that review, and how many paid for ongoing advice but had their fee refunded as the suitability review did not happen.
The FCA is collecting this information to assess what, if any, further regulatory work it may undertake in this area and it anticipates providing a further update once it has considered the firms’ responses.
Around twenty of the largest advice firms are receiving the survey to ensure that the widest possible understanding of market practice is achieved. Their selection is not based on any particular concerns with those firms.
The FCA had indicated it would undertake some cross-firm work in this area in a letter sent in December 2022 in which it set out its concerns that advice firms were not adequately considering the relevance, nature and costs of these ongoing services for all their clients.
A further letter sent in January 2023 had explained how advice firms should approach the Consumer Duty, reminding them that the FCA requires firms to act in good faith towards customers, avoid causing them foreseeable harm, and enable and support them to pursue their financial objectives.
How can we help you?
Thistle Initiatives has supported adviser firms for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting firms as-and-when, our team of specialists can serve as your right hand in meeting and complying with FCA regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
Are you looking for help with your Consumer Duty or FCA relationship arrangements, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to info@thistleinitiatives.co.uk.